GBP/USD sticks to the rangebound between 1.23/1.26 – UOB

FX Strategists at UOB Group have suggested Cable’s outlook should persist for the next 1-3 weeks, likely between 1.2300  and 1.2600.

Key Quotes

“GBP traded in a choppy manner yesterday; whipsawing between 1.2419 and 1.2525. While upward momentum is not strong, the immediate bias is tilted to the upside but at this stage, a clear break above 1.2550 seems unlikely”.

“We have held a neutral view on GBP for close to 2 weeks now. The price action has been choppy but the range for the past two weeks is well within our expected consolidation range of 1.2300/1.2600. While shorter-term indicators are mildly supportive, only a clear break above 1.2600 would indicate that GBP has moved into a bullish phase. In the meanwhile, expect further choppy trading between 1.2300 and 1.2600”.